World Enterprises is determined to report earnings per share of $2.67, and therefore acquires the Wheelrim and Axle Company. You are given the following facts: World Enterprises Wheelrim and Axle Merged Firm Earnings per share $2.00 $2.50 $2.67 Price per share $40 $25 ? Price-earnings ratio 20 10 ? Number of shares 100,000 200,000 ? Total earnings $200,000 $500,000 ? Total market value $4,000,000 $5,000,000 ? There are no gains from merging. In exchange for Wheelrim and Axle shares, World Enterprises issues just enough of its own shares to ensure its $2.67 earnings per share objective. a. Complete the above table for the merged firm. b. How many shares of World Enterprises are exchanged for each share of Wheelrim and Axle? c. What is the cost of the merger to World Enterprises? d. What is the change in the total market value of the World Enterprises shares that were outstanding before the merger?
In: Finance
There were initially two satellite radio providers in the U.S. market, Sirius and XM Radio. The firms merged to form one firm, and the federal government did not challenge the merger. Although the merger created a single seller in this market, the existence of a monopoly may not have much impact on U.S. consumers. Which of the following statements are plausible reasons for the limited impact of the merger?
| A) all of the above |
| B) The merged firm will operate at higher capacity and may be able to reduce costs through economies of scale and perhaps learning-by-doing, which will benefit U.S. consumers. |
| C) Although there will only be one seller of satellite radio, there are other forms of radio broadcasts available to U.S. consumers and demand for satellite radio may be relatively elastic. |
| D) There are very large fixed costs in providing satellite radio, and the industry may be a natural monopoly. One seller may be able to operate at lower cost than two sellers. |
In: Economics
1. A researcher in a small town is interested in estimating the true proportion of adults in the town who smoke. 215 adults were randomly selected from the town, and it was found that 36 of them smoke. We would like to construct a 90% confidence interval estimate for the true proportion of adults in the town that smoke.
a. What are the values of ??/2, ?, ?̂, and ?̂? (Round ?̂and ?̂ to three decimal places if needed.) ??/2
Za/2= _______________ ? = _______________ ?̂= _______________ ?̂ = _______________
b. Calculate the margin of error (E) for a 90% confidence interval. (You must show the setup to receive credit. You may round to four decimal places if needed.) E = _______________
c. Construct the 90% confidence interval for the true proportion of smokers in the town. (Round limits to three decimal places.) _______________< ? < _______________
please show work and setup
In: Statistics and Probability
What events in the world impacted the political economy of Latin America from 1492-1825? While you will most certainly discuss Europe, please include at least one example from another region of the world.
In: Economics
Why are the Latin American people still struggling with control of their everyday lives? How does this perspective compare to our current freedoms in the United States, and how does this affect your individual knowledge about freedom?
In: Psychology
The competitive indexes suggest that Latin America has divided by itself into high achieving countries like Chile and low achieving ones like Nicaragua, because of this blanket policy for economic growth will not work. (Please expand on this)
In: Economics
of 200 adults randomly selected from one town 43 of them smoke. find the best point estimate for the proportion of all adults in town who smoke. for a 95% confidence interval for the true proportion of all adults in the town who smoke, what is the margin of error ? round up to three decimal places.
In: Statistics and Probability
As a manager for finance, information and communication technology of Okahao town council, your chief executive officer have tasked you to draft the town council's budget. he further indicated that the town council will use a zero based budgeting for the 2020/2021 financial year. present the budget using the zero based format
In: Finance
NuComp Company operates in a state where corporate taxes and workers' compensation insurance rates have recently doubled. NuComp's president has just assigned you the task of preparing an economic analysis and making a recommendation relative to moving the entire operation to Missouri. The president is slightly in favor of such a move because Missouri is his boyhood home and he also owns a fishing lodge there. You have just completed building your dream house, moved in, and sodded the lawn.
Your children are all doing well in school and sports and, along with your spouse, want no part of a move to Missouri. If the company does move, so will you because the town is a one-industry community and you and your spouse will have to move to have employment. Moving when everyone else does will cause you to take a big loss on the sale of your house. The same hardships will be suffered by your coworkers, and the town will be devastated.
In compiling the costs of moving versus not moving, you have latitude in the assumptions you make, the estimates you compute, and the discount rates and time periods you project. You are in a position to influence the decision singlehandedly.
Instructions
describes a situation where NuComp is in a position to relocate and you are to calculate the costs.
a. Who are the stakeholders in this situation?
b. What are the ethical issues in this situation?
c. What would you do in this situation?
In: Accounting
The primary reason for the low profitability of homeowners' insurance companies in the 1990s was:
A. losses from catastrophes.
B. poor underwriting.
C. mismanagement.
D. unexpected inflation.
In: Operations Management